If the government sets a price floor above what would be the competitive market price of a product, a shortage of the product will develop.
Answer the following statement true (T) or false (F)
False
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Public saving equals taxes minus government spending minus transfer payments
Indicate whether the statement is true or false
Refer to Figure 23-2. If the U.S. economy is currently at point N, which of the following could cause it to move to point K?
A) Government expenditures increase. B) Firm's cash flows rise as profits rise. C) Households expect future income to rise. D) Household wealth falls.
When very few substitutes for a good exist, demand will be
A) elastic. B) unit-elastic. C) inelastic. D) perfectly elastic.
In both monopolistically competitive and perfectly competitive industries
A) firms produce products for which there are no close substitutes. B) there are high barriers to entry. C) there are many buyers and sellers. D) firms are price takers.